GBTC outflows have significantly slowed down, indicating growing institutional interest in Bitcoin and potential for a price rally.
Recent trends in call option buying and the upcoming Bitcoin halving event suggest a bullish market outlook, targeting a Bitcoin value of around $80,000.
A significant shift in Bitcoin’s market dynamics is evident. After a period of outflows in March, there’s been a rebound in spot Bitcoin ETFs, with inflows turning positive, indicating a reversal from the previously observed corrections due to GBTC sell-offs. This renewed institutional interest in Bitcoin, highlighting a stark contrast from earlier predictions, is detailed in the latest CNF report.
The Surge in Institutional Buying: Coinbase Premium and Bitcoin ETFs
As of April 3rd, GBTC outflows have plunged to a new one-month low of $75 million. This decrease is noteworthy, considering the daily outflows remained below $100 million since late February. Institutional investors like Blackrock’s IBIT ETF and FBTC have significantly contributed to this shift, with the former purchasing $42 million and the latter $117 million in Bitcoin. This movement reflects in the total Bitcoin ETF inflows reaching $113 million, signaling a bullish stance in the market.
As highlighted in the CNF Youtube video, the Coinbase Premium – the price difference of Bitcoin on Coinbase compared to other exchanges – has been on the rise.
This indicates robust US institutional buying. Adding to this, CryptoQuant reports a substantial amount of Bitcoin moving off exchanges into cold storage, potentially leading to supply shocks. Despite the positive Bitcoin futures funding rates pointing towards bullish sentiment, historical patterns suggest the possibility of corrective phases that offer buying opportunities.
Bullish Trends and Market Predictions: Call Options and Chart Patterns
The optimism in the Bitcoin market is further emphasized by QCP Capital’s observations, reported in a Binance post. The trading firm noted an uptick in high-strike call options buying, with nearly “$10 million spent on premiums for $60,000 and $80,000” strike options. This indicates a bullish outlook, as investors bet on significant price rises.
Furthermore, a crypto expert highlighted Bitcoin’s breakout from a ‘cup & handle’ chart pattern. This pattern typically follows an uptrend and suggests readiness for a new upward move. For Bitcoin, it points towards an approximate target of $80,000.
As of now, Bitcoin trades at $66,186, marking a slight increase of 0.28% in the past day, albeit a decrease of 5.60% over the past week. This price fluctuation, as shown in the attached chart, adds another layer to the market’s dynamic nature.
